When know Nzforex In forex, it would be just as foolish to buy or sell 1 euro, so they usually come in “ lots” of 1, 000 units of currency ( micro), 10, 000 units ( mini), or 100, 000 units ( standard) depending on your broker and the type of account you have ( more on “ lots” later). Currency trading is a speculative market.
When know Forex
You want to buy when the currency is cheap and then sell it when it becomes more expensive. For example, buying EUR/ USD pair ( when you buy EUR for US dollars), traders expect EUR to rise in value, because if it does, they can sell it. Taking a position in the Forex market.
In Forex market you can but a currency pair when you analyze that the price of the base currency should go up. When the price appreciate, you can sell the currency pair to earn your profits.
Forex know Signal
On the other hand, if your analysis says that the price of the base currency should go down,. Simple logic, you should buy a currency when you expect the other currency in a pair to get weaker as compared to the one you' re aiming and vice versa. As Forex trading takes place in a paired form, you can' t buy or a sell a single currency.
It has to be combined with another one. Buying and selling forex can be complex, therefore understanding the mechanics behind it, such as h ow to r ead c urrency p airs, is essential prior to initiating a trade.